Ericsson Sued Apple for Licensing of 5G Patents

Battles and rivalries are a part of businesses. When big names fight over a thing, it spreads like a fire. The same happens recently. In the simmering dispute between the two businesses over royalty payments for including 5G wireless patents within iPhones, Ericsson has issued a new set of patent litigation charges against Apple (2788.T).

Both businesses have previously filed lawsuits in the United States after talks to renew a seven-year licensing arrangement for telecommunications patents that began in 2015 fell apart. Ericsson filed the first lawsuit in October, alleging that Apple was attempting to reduce royalty rates unfairly. In December, Apple launched a lawsuit against the Swedish corporation, accusing it of adopting “strong-arm methods” to renew patents.

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Ericsson Stance

“Ericsson has failed to discuss fair terms for continuing our patent license agreement, rather suing Apple all over the world to collect enormous fees… we are calling on the court to assist us in determining a fair price,” an Apple representative said on Tuesday.

Patent battles are prevalent among technology businesses since every dollar saved may add up quickly over the course of a contract, with companies like Ericsson charging between $2.50 and $5 for each 5G handset.
Apple is Using Their Technology.

An Erricson spokesman states, “Because the previous agreement has ended and we are unable to abide by the terms and range of a new license, Apple is currently utilizing our innovation without a license,”
The Swedish firm invests around $5 billion in research each year, has a patent portfolio of over 57,000 patents, and revenues from its patented technology make up roughly a quarter of its operating income.

After months of legal battles, Ericsson (005930. KS) solved patent disputes with Samsung (005930. KS) the year before, temporarily lowering its quarterly earnings. When a settlement is made, pending debts are usually cleared.

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